HS2 Rail Network in ‘Serious Situation,’ Project CEO Warns Amid Cost Concerns

An HS2 construction worker at Curzon Street station in Birmingham, England, on May 10, 2021. Jacob King/PA

Britain’s High Speed 2 (HS2) rail network is in a “serious situation requiring a fundamental reset” to minimise costs, the CEO of the public body responsible for the project warned in a Dec. 30 statement.

Mark Wild, who joined HS2 Ltd as chief executive in December, said that a wide-ranging review of the infrastructure project will be published next year.

“The prize is clear. However, the programme is in a very serious situation that requires a fundamental reset to enable it to be delivered to the lowest feasible cost,” he said in the statement. “I am committed to delivering this reset over the coming year to ensure the railway can be brought into service safely and efficiently.”

The HS2 high-speed rail line was originally planned to connect London to Birmingham, Manchester, East Midlands Parkway, Leeds and York. In October 2023, its northern leg, connecting Birmingham and Manchester, was scrapped by the Conservative government due to concerns over the project’s soaring costs.

The remaining part of the line, Phase 1, is set to link London’s Euston to a new station at Birmingham Curzon Street. The project also includes new stations at Old Oak Common, in northwest London, and Birmingham Interchange, near Solihull.

“HS2 represents a significant investment in Britain’s future and in the last month I’ve been inspired by the hugely impressive feats of civil engineering taking shape right along the route. New railways provide better journeys and they boost economic growth by fuelling investment in communities and businesses,” Wild said.

The Labour government has said it has no plans to reinstate the cancelled phases of HS2 and has pledged to take urgent measures to address the project’s escalating costs.

As part of the October budget, the government confirmed funding for the HS2 tunnels to London Euston and its plans to seek private investment for the development of the HS2 station at Euston and the surrounding area.

Construction Update

HS2 Ltd reported on Monday that 70 percent of the project’s twin-bore tunnels have been excavated to date. This represents 38 of the 55 miles being built for the railway.

Five out of 12 tunnel drives have been completed. The drive for the Northolt Tunnel, in north-west London, was finished on Dec. 19. The company also said it started building 158 out of 227 viaducts and bridges, with 13 percent already finished.

The project employs more than 31,000 people and operates 350 active construction sites along the length of the route.

Multiple systems such as tracks, overhead lines, and power will be installed to transform HS2 into an operational railway once construction is complete.

In the coming year, HS2 is set to complete the 8.4-mile Northolt Tunnel, the second longest on the line. Work will also be completed on both bores of the 3.5-mile Bromford Tunnel, a section of the railway that will enable the trains to enter and exit Birmingham.

Old Oak Common, the base slab of the vast underground station box, is also due to be finished in 2025, as is the first deck section of the River Tame West Viaduct, one of 13 viaducts being built for Delta Junction. This triangular section of the railway, east of Birmingham, will allow trains to operate between London, Birmingham, and the north of the country.

Costs and Oversight

The costs associated with the first phase of the HS2 were estimated at £20.5 billion in 2012. Since then the forecast costs have surged up to £56.6 billion.

The government has recently taken steps to address the escalating costs and management challenges. In October, the government reinstated ministerial oversight for HS2 and stressed the need to control project’s budget and ensure efficient delivery.

The government released its first report on HS2 progress on Dec. 17.

Transport Secretary Heidi Alexander said the government is waiting for the results of an assessment by HS2 Ltd to understand the project’s cost, schedule, and capability.

She said that until Wild concludes this work, the government cannot be confident in the forecast outturn cost of the project.

“We are, therefore, managing HS2 Ltd’s delivery through annual funding and delivery targets for this financial year and next, but with reduced delegation on contingency,” Alexander said. “It will also be necessary to agree longer-term funding for HS2 in the spending review, due to conclude next year.”

Phase 1 of the HS2 is estimated to be completed between 2029 and 2033, with HS2 Ltd aiming for a 2030 completion date.